Pedro Sanchez. | J.J. Guillén

Spain's government will approve a 22 per cent increase in the minimum wage to 900 euros per month on 21 December, Prime Minister Sánchez announced on Wednesday.

The increase, due to enter into force in January, was agreed jointly with anti-austerity party Podemos, as part of the prime minister's efforts to get enough support for the 2019 budget to be adopted in parliament.

The wage increase, initially expected to be formally decided on 28 December, will be approved by decree as the cabinet will have an exceptional meeting in Barcelona on 21 December, in what Sanchez said was a sign that his government wanted to boost "prosperity for all territories".

Sanchez's PSOE party needs the support of smaller parties to pass legislation such as the budget proposal.